Specifically, the new law contains certain provisions that have a direct favorable impact on charities:

1. IRA Charity Contribution. The law allowing tax free distribution from an IRA (up to $100,000 for those over 70&frac12;), if the distribution is contributed to charity, is extended through 2011. If done in January, 2011, the taxpayer can elect to have the distribution deemed made on December 31, 2010. Code § 408(d)(8)(F)

2. Contribution of Conservation Easement. The more favorable deduction rules for contributions to charities of capital gain real property made for conservation purposes are extended until 2012. Code § 170 (b)(1)(E)(vi)

3. Contribution of Book Inventories to Public Schools. The enhanced deduction for contributions by corporations of book inventories to public schools is extended through 2011. Code § 170(e)(3)(D)(iv)

6. UBIT from Certain payments from Controlled Subsidiaries. The special favorable grandfather rules for payments such as rent, royalties or interest income by a controlled organization to its controlling parent under agreements in effect on August 17, 2006 (pursuant to the 2006 PPA) are extended until 2012. Code § 512(b)(13)(E)(iv)

7. Contributions of property by S corporations. The new law extends until 2012 the special basis adjustment rule. This limits the reduction in a shareholder’s basis in the S corporation stock by the pro rata share of the contributed property’s adjusted basis rather than its fair market value. Code § 1367(a)

(Please note, in the links provided to the relevant provisions of the Code, the dates have not yet been updated to reflect the extensions.)